1. Field
The present disclosure relates generally to a data processing system and more particularly to supply chain networks. Still more particularly, the present disclosure relates to analysis and modeling to predict supply chain performance in a supply chain network.
2. Background
Operational and support costs of military and commercial aircraft systems typically make up the majority of total ownership costs a customer pays over the life of a system, from initial design to retirement. Design and procurement typically make up the other minority of total ownership costs. Suppliers and customers are increasingly concerned with reducing logistics and operational support costs of products and services, while at the same time assuring required operational and system availabilities levels are met.
Performance-based logistics contracts are increasingly replacing traditional transaction based contracts as a means to improving efficiency and reducing overall costs, holding the service provider responsible for meeting performance measures as negotiated by contract. Under these types of agreements, incentives are paid to the service provider for exceeding required performance levels and penalties are imposed when performance metrics are not met.
Modeling, simulation, and analysis tools provide a means of identifying, assessing, and predicting system performance and associated levels of risk prior to entering contracts. Existing tools focus on inventory stocking level optimization and are limited to supply chain specific aspects of products and services. These tools include a high product cost, and are complex and time-intensive to set up and execute.
Therefore, it is advantageous to have a method and apparatus that takes into account one or more of the issues discussed above, as well as possibly other issues.